What's In A Price Book?

December 9th, 2016

What's in a Price Book? | Learn from LP Solutions

Creating your own price book specifically for your own company can be tedious, but will pay off with high dividends in the end. Let's keep in mind, this price book is what sells your company. In the old days of the 1980’s and beyond, can you remember when people charged time and material for a job? We look back at that now and think, what a time that was! If I didn’t feel good that day, I could milk the job and the customer has to pay for it. The customer paid for the slow AND new employees. So the the same exact job one day could be a completely different price the next day. Where is the consistency? Where is the peace of mind for the customer.

Times have changed. It used to be, “If you don’t like it, go somewhere else”.  Work is a little harder to come by these days and we are a little more appreciative for the work. Businesses aren’t looking at making the quick buck anymore. They are all looking long term. What can we do to create loyalty with our existing and new customer base to where the customer will think twice about going anywhere else.  

We don’t want to be so priced out of our industry range that we become the mega-expensive company that everyone knows about. The company we have to call because we need it done yesterday because no one else can come out. So, what is put into our price book that doesn’t smoke the customer for their life savings, but can bring peace of mind and a relaxed atmosphere to our new customer while still keeping us in business? Where is that happy medium? What is it that we are showing the customer? High prices or peace of mind? Do you charge $600 to unclog a toilet or $600 to unclog a toilet with a service agreement, 1 year no-stoppage guarantee, no overtime charges, no travel time charges and 60% off lifetime service? Which one do you think the customer will buy? This should be a no brainer! It’s called relationship and loyalty building. As I look at it, if  your charging $600 to fix a toilet with no added benefits, your ripping off your customer. On the flip side, if you charge $600 and don’t come through with your promises…..you’re…..still….. ripping off the customer.

Other items that should be in every price book are: Yard sign discounts with daily, weekly, monthly and yearly discounts, testimonial discounts to each social media network, no travel time charges, free home inspection, free biannually inspections, 25% word of mouth discount, referral discount, neighbor discount, monthly sales, no overtime charges, veteran, nurse, doctor, police, fire, EMT, CPA, you drive a Chevy, XYZ, ABC discounts. When was the last time your company gave out a free “massage” coupon to a customer for their referral? Who does that? How about fanning out 10 gift cards in front of the customer for the customer to choose from for buying $500 or more of you services?? Sounds like we have completely forgotten about that expensive bill at the customer's house. Now we’re offering gift cards for a free massage? We have taken that expensive $500+ bill and turned it into a new loyal relationship with the customer whose attention has been diverted from $500 out the door to setting up a message next week. You’ve taken pain and replaced it with pleasure.

Another option which could be very detailed on your end and would have 5 -7 different options for 1 repair, all with different prices. Keep in mind, each option will have to be better than the last option. Offer 1 is your basic repair and option 7 is the most intensive repair and guarantees everything under the sun for that repair. This is where you need to be creative in what you offer.

It’s all about being creative, thinking outside the box and taking care of your customer.

As the saying goes, “If you don’t take care of the customer, someone else will”.